Dividend

  • What are the features of the Electronic Clearing Facility (ECS) introduced by the Reserve Bank of India (RBI)?

    RBIhas introduced the Electronic Clearing Service which allows electronic creditof the dividend amount to your bank account for the amount due to you.

    Thesalient features are:

    • Instantcredit - This Facility provides instant credit of dividend amount to your bankaccount electronically at no extra cost. ECS also eliminates the delay inpostal transit and fraudulent encashment of warrants.
    • OptionalScheme - This scheme is optional Coverage - ECS is presently available in majorcities/centres like Ahmedabad, Bangalore, Calcutta, Chennai, Delhi, Hyderabad,Mumbai, Pune. RBI has been extending this facility to various centres from timeto time. The scheme is at present available only for payments upto a maximumamount of Rs 500,000.
    • Procedurefor credit - Under this facility the amount of dividend payable to you would bedirectly credited to your bank account. Your bank branch will credit your accountand indicate the credit entry as 'ECS' transaction in your passbook/statementof account.
    Incase ECS facility is not made available to you by the Company/their Bankers ata particular centre or the amount payable to you exceeds Rs 500,000, the dividendamount due to you would be remitted by means of a dividend warrant which wouldbe posted to your address with the particulars of the bank/branch and accountnumber furnished by you duly incorporated on itIncase ECS facility is not made available to you by the Company/their Bankers ata particular centre or the amount payable to you exceeds Rs 500,000, the dividendamount due to you would be remitted by means of a dividend warrant which wouldbe posted to your address with the particulars of the bank/branch and accountnumber furnished by you duly incorporated on it.

  • How do I avail of the ECS Scheme introduced by Reserve Bank of India (RBI)?

    To avail of ECS facility (i.e. direct electronic credit to your bank account),please write to KCPL specifying the following details:

    • Your folio number
    • Name and address of the bank branch
    • Account type and account number 
    • The9 digit code number of the bank and branch as appearing on the MICR cheque issued by the bank 
    This is applicable only for securities held in physical form. For securities held in electronic form, please contact your Depository Participant.

  • What do the terms 'ex-dividend' and 'record date' mean?

    Before announcing each dividend and in consultation with the Stock Exchange, the company sets a date on which shares will be sold without entitlement to the dividend. This is known as going'ex- dividend'. Before that date they are said to be 'cum dividend'.

    If you buy shares before the ex-dividend date you are entitled to receive the dividend recently announced. If you buy on or after that date, in the ex-dividend period, that dividend is payable to the previous owner.

    The dividend is paid to shareholders based on the number of shares held on the share register at the deadline('record date'). The record date is currently two days after the ex-dividend date. If you receive a dividend having recently sold your shares and are unsure whether you are entitled to it, contact the agent who acted on your behalf in the sale. Depending on the terms of the sale, the dividend may be due to the new owner.

  • What are the ways I can receive the dividend amount due to me?

    Following are the ways to receive the dividend

    • The warrant can be mailed to your address as recorded with us or to the address as downloaded to KCPL by your Depository Participant
    • The warrant can be posted directly to your bankers if a mandate instruction is registered with us, for physical holding only 
    • The net amount due to you can be credited electronically to your bank account based on the ECS instructions submitted to SSIPL for physical holdings, and downloaded to KCPL by your Depository Participant for electronic holdings 
    Please ensure that the bank account details provided is correct and complete avoid delay in credit.

  • How do I get a duplicate dividend warrant?

    You are required to communicate about non-receipt of dividend, with all relevant details (DP ID and Client ID particulars, details of the period for which dividend not received) to KCPL.The first thing KCPL will do is to check whether your dividend warrant has been returned as undelivered. For instance, was it because you were not at home, the address was wrongly written, etc. If this is not the case, KCPL will see if the validity period of the warrant is over, since duplicate warrants cannot be issued during the validity of the original warrant. Once KCPL has confirmed that the original warrant has expired, they will check the records to confirm that the dividend remains unpaid. Then they will ask you to execute an indemnity bond, in a prescribed format. Once they receive this, they will issue a duplicate warrant.

  • Why do I have to wait for expiry of the validity period of the original warrant?

    Dividend warrants are payable at paracross the country, so banks do not accept ‘Stop Payment’ instructions for thesame. This is the reason why you have to wait till the warrant is no longervalid in order to get a duplicate.

  • What is the validity period of the revalidated warrants?

    Revalidated warrants are valid for 3months from the date of revalidation.

  • I have an old warrant which I forgot to encash and is now time-barred? Can I still obtain the amount due to me?

    Yes.Provided the amount is not transferred to the General Revenue Account of the Central Government or the Investor Education and Protection Fund.

    Please mail the outdated instrument to KCPL to enable issue of a fresh instrument, if the amount reflects an outstanding status in the records of the company.

  • When is unclaimed dividend amount transferred to the General Revenue Account/Investor Education Protection Fund of the Central Government?

    As per the Companies Act, all unclaimed and unpaid dividend maintained in the separate dividend account of the Company was to be transferred to the General Revenue Account of the Central Government after the prescribed period of approximately3 years. Prior to such transfer, an intimation requesting the investor to claim the amount has always been sent by KCPL. In spite of this, if an investor did not make the claim, the outstanding dividend amount would get transferred to the Central Government after the stipulated period. Any claim thereafter would have to be made to the Registrar of Companies in the prescribed form available with KCPL.

    However as per the Amendment vide the Companies (Amendment) Ordinance, 1998, Section205 (A) of the Companies Act 1956, this clause has been amended with effect from 31st October, 1998. Accordingly, any amount, which remains unpaid or unclaimed for a period of 7 years, shall be transferred by the company to the"Investor Education and Protection Fund"("The Fund"). No investor can claim this amount thereafter from the Fund.

  • Why can't Adani Power take on record the bank details in case of dematerialised shares?

    As per the Depository Regulations, the company is obliged to pay dividend as per the details of demat shareholders furnished by the concerned Depository Participant. However, if in case one needs to record his mandate then such details needs to be furnished to the respective Depository Participant with whom one holds the demat account and not to Adani Power or KCPL, as we are not authorized to make or incorporate any change in records received from the Depository.